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Overview of Kentucky Taxes Gross Paycheck$3,146Federal Income15.22%$479State Income4.99%$157Local Income3.50%$110FICA and State Insurance Taxes7.80%$24623 more rows Dec 23, 2021
Kentuckys sales and use tax rate is six percent (6%). Kentucky does not have additional sales taxes imposed by a city or county.
The occupational tax is imposed upon the privilege of engaging in business, profession, occupation, or trade within Louisville Metro, Kentucky, regardless of the legal residence of the person so engaged.
Products defined as food and food ingredients in KRS 139.485 are exempt from sales and use tax in Kentucky.
Compute tax on wages using the 5% Kentucky flat tax rate to determine gross annual Kentucky tax. Divide the gross annual Kentucky tax by the number of annual pay periods to determine the Kentucky withholding tax for the pay period.
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Compute tax on wages using the 5% Kentucky flat tax rate to determine gross annual Kentucky tax. Divide the gross annual Kentucky tax by the number of annual pay periods to determine the Kentucky withholding tax for the pay period.
Occupational license taxes may be imposed as a percentage of gross earnings (payroll) on all persons working within the city or on gross receipts or net profits on all businesses within a city. A flat annual rate may also be used by cities, which is often referred to as a business license fee.
Kentuckys sales and use tax rate is six percent (6%). Kentucky does not have additional sales taxes imposed by a city or county.
You are required to pay local earned income tax on the income earned for the period of time you resided in the municipality. For example, if you lived and worked in the municipality for only 4 months then you only pay on the income earned during those 4 months.
Kentucky imposes a flat income tax. This differs from the federal income tax, which has a progressive tax system (higher rates for higher income levels). The state income tax rate is 5% regardless of income.

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